Ardent, Baptist Community finalize BSA sale

The complex business of purchasing an entire system of Amarillo health facilities now is a done deal.

Ardent Health Services of Nashville, Tenn., and Baptist Community Services on Wednesday announced their successful completion of the purchase of the BSA Health System, which includes the 445-bed BSA Hospital, the Don & Sybil Harrington Cancer Center and other health system assets.

Baptist Community had shared 50-50 ownership of the system with Irving-based Christus Health since 1996.

With Christus’ exit, Ardent acquired an 80-percent interest in BSA Health System, with Baptist Community retaining a 20-percent interest. The price and financial terms of the agreement were not disclosed.

“It has been a very complicated transaction, but one that’s gone very smoothly, all things considered, through the regulatory process,” Baptist Community President and CEO Steve Dalrymple said.

Ardent reported 2011 revenue of $1.97 billion. Its subsidiaries own and operate hospitals, health plans and multi-specialty physician groups in Albuquerque, N.M., and Tulsa, Okla., and the surrounding areas.

The pact calls for Ardent and Baptist Community to have equal governance over the health system, a network that employs nearly 3,000 people. Ardent and Baptist Community each will appoint five members to a 10-member governing board.

The system includes the hospital, cancer center, BSA’s network of primary-care, urgent-care, surgical and bariatric clinics, the system’s preferred-provider network and the system’s partnership interests in Physicians Surgical Hospitals, ADC Endoscopy and Advanced Imaging Center, according to BSA information.

“During this due diligence process, we learned a great deal more about BSA and its physicians, nurses and employees,” Ardent President and CEO David T. Vandewater said in announcing the transaction completion. “We are even more impressed about the quality of care, the customer service and the incredible culture that exists today throughout BSA. We are honored to be a part of the Amarillo community and this health system.”

Christus put its half of BSA Health System on the market in December, and Baptist Community officials at that time said the nonprofit’s stake could also be in play.

Officials from Ardent and Baptist Community announced the prospective joint venture in October.

Under the pact, Ardent committed to retaining BSA CEO Bob Williams and the system’s management team. Terms of the deal also included hiring all employees upon completion of the sale, with benefits and compensation to remain generally the same.

“The good news is, throughout this process, one of the things that became very evident to us is that the culture and the people that were managing the organization currently were the type of people that we wanted to be with going forward,” Vandewater said Wednesday in a telephone interview.

Ardent also agreed to invest $25 million each into two projects: expansion of the hospital’s emergency room and construction of a new Harrington Cancer Center patient facility.

A portion of proceeds from the sale will be used to create a $40-million Harrington Cancer Foundation, Kathy Cornett, vice chairwoman of the Harrington Cancer Center’s board of directors, said in December.

The foundation will sustain the center’s ability to deliver care and provide support services to patients, regardless of their ability to pay, Ardent, Baptist Community and cancer center officials have said.

Ardent has said it will invest $75 million in the system during the next five years for additional services, equipment and technology.

Ardent also agreed to retain current insurance and payer contracts, so employees in the region whose insurance currently includes BSA as a preferred provider will see no change, BSA information said.